Seven steps to starting your own business - Getting Started - Brief Article

Black Enterprise, March, 2003

Johnette Ruffner-Ceaser, National Coordinator of the NAACP Reginald F. Lewis Youth Entrepreneurial Institute in Baltimore, suggests that aspiring entrepreneurs consider these seven steps to get started:

1 Come up with a business idea. What hobbies or activities do you like to do that could make you money?

2 Develop a business plan. Write down what your business will offer, how and to whom. Include your long-term goals for the business.

3 Do market research to check out your competitors. Find out who else is offering your service. How do they promote it and what are their prices?

4 Determine how you will market your product. How will you get the word out about your business?

5 Determine your operating costs. How much will you have to spend for supplies, equipment, etc.?

6 Determine how you will obtain start-up funds. Will you ask mom for a loan, or save your allowance for a few weeks?

7 Determine your profit/loss. Deduct how much you will charge for your product from how much you spent to create the product. If there's anything left over, you've made a profit; if not, then you have a loss.

Starting a business can begin with a hobby. But when you decide to turn your hobby into a business, you have taken that hobby and given it a completely different dimension. Therefore before you decide to turn your hobby into a business, consider your options. Do your research. Develop a plan. Many businesses start as a sole proprietorship, but after your business begins to grow, you may want to reassess your situation. See if you are ready to take your business to the next level. Can you get away with being a home-based operation, or do you need a storefront? Are licenses and permits needed? During the planning process, discuss your ideas with your parents and family members. Consider their advice. Family support is always a plus!